UK-based asset management company Brevan Howard has revealed details of its $1-billion crypto hedge fund that has been in the news lately.
$1 Billion Crypto Fund
In a statutory filing with US Securities and Exchange Commission (SEC), Braven Howard, a global asset manager with $25 billion in assets under management (AUM), provided details of two sub-entities that together raised over $210 million towards its planned $1 billion crypto hedge fund.
Digital Asset Multi-Strategy Fund Ltd has raised $184.15 million from four investors, and the minimum acceptable investment was $10 million. Brevan Howard Digital Asset Multi-Strategy Fund LP gathered $29.71 million from six investors, the company said in its SEC filing dated September 6, 2022.
In August, media reports suggested that Braven Howard’s digital and cryptocurrency investment arm – BH Digital – had raised $1 billion for investment in cryptocurrencies and digital assets.
It’s believed that Breven Howard has created several sub-entities keeping in view different tax jurisdictions. Their assets under management will add up to $1 billion. These sub-entities are open-ended, meaning they can raise funds indefinitely.
One Year of BH Digital
BH Digital was launched in September 2021 as a crypto and digital asset investment division of Brevan Howard. It is mandated to provide institutional investors access to crypto, digital assets, and blockchain investment opportunities.
Immediately before its launch, CryptoPotato reported that Brevan Howard was planning to roll out a new cryptocurrency division and had appointed Colleen Sullivan to head the new division.
The asset manager first showed interest in cryptocurrency with an investment of $84 million in BTC, ETH, and several other digital assets in April 2021. The investment accounted for 1.5% of the company’s total $5.6 billion hedge fund and came at a time when inflation fears were gaining ground amid the US government’s announcement of a $1.9 trillion Covid-19 relief package.
Timing of Fund’s Launch
BH Digital’s $1 billion crypto hedge fund comes at a time when valuations of crypto and blockchain start-ups have substantially moderated in the recent market shakeout. The asset manager has been mainly on the sidelines during the surge in start-ups’ valuations and chose not to compete with top investment funds.
With one of the most substantial assets under management, BH Digital is ready to back start-ups at attractive valuations.
A study last year said that 98% of hedge fund CFOs expect to invest in digital assets by 2026, and hedge funds will increase their digital asset allocations to 7.2%.